After the recent decline, Indo Thai Securities Limited (NSE:INDOTHAI) Senior Key Executive Dhanpal Doshi's holdings have lost 10% of their value
Key Insights
- Indo Thai Securities' significant insider ownership suggests inherent interests in company's expansion
- The top 6 shareholders own 53% of the company
- Past performance of a company along with ownership data serve to give a strong idea about prospects for a business
Every investor in Indo Thai Securities Limited (NSE:INDOTHAI) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 56% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, insiders as a group endured the highest losses after market cap fell by ₹4.4b.
Let's delve deeper into each type of owner of Indo Thai Securities, beginning with the chart below.
View our latest analysis for Indo Thai Securities
What Does The Institutional Ownership Tell Us About Indo Thai Securities?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Since institutions own only a small portion of Indo Thai Securities, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.
Indo Thai Securities is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Indo Thai Securities' case, its Senior Key Executive, Dhanpal Doshi, is the largest shareholder, holding 12% of shares outstanding. Varsha Doshi is the second largest shareholder owning 12% of common stock, and Parasmal Doshi holds about 11% of the company stock. Interestingly, the third-largest shareholder, Parasmal Doshi is also a Chairman of the Board, again, indicating strong insider ownership amongst the company's top shareholders. Additionally, the company's CEO Sarthak Doshi directly holds 4.6% of the total shares outstanding.
We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Indo Thai Securities
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems that insiders own more than half the Indo Thai Securities Limited stock. This gives them a lot of power. Given it has a market cap of ₹38b, that means they have ₹22b worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 40% stake in Indo Thai Securities. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Indo Thai Securities better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Indo Thai Securities , and understanding them should be part of your investment process.
Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.